MIRA INFORM REPORT

Report Date :

18.04.2013

IDENTIFICATION DETAILS

Name :	SWASTIK CERACON LIMITED (w.e.f. 27.04.2010)
Formerly Known As :	MARBOLITE GRANITO INDIA LIMITED
Registered Office :	D/801-807, Ganesh Meridian, Opposite Amiraj Farm, New Gujarat High Court, S.G. Highway, Ahmedabad – 380060, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	31.01.2005
Com. Reg. No.:	04-045383
Capital Investment / Paid-up Capital :	Rs.118.000 Millions
CIN No.: [Company Identification No.]	U26920GJ2005PLC045383
IEC No.:	0806012111
PAN No.: [Permanent Account No.]	AAFCM4519E
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Wall Tiles, Floor Tiles, Vitrified Tiles and Quartz.
No. of Employees :	500 (Approximately) (In Office 100) (In Factory 400)

RATING & COMMENTS

MIRA’s Rating :

B (36)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 830000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The financial strength of the company is moderate. However, trade relations are reported as fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating : B (Suspended)
Rating Explanation	High risk of default.
Date	March 29, 2013

Reason for suspension: Non Co-operation by the subject to provide details to CRISIL

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Parag Dhorajia
Designation :	Key Executive
Contact No.:	91-9925046704
Date :	06.04.2013

LOCATIONS

Registered Office :	D/801-807, Ganesh Meridian, Opposite Amiraj Farm, New Gujarat High Court, S.G. Highway, Ahmedabad – 380060, Gujarat, India
Tel. No.:	91-79-40097072
Mobile No.:	91-9925046704 (Mr. Parag Dhorajia)
Fax No.:	91-79-29299721
E-Mail :	sales@swastiktiles.in sec.vimal@yahoo.co.in
Website :	http://www.swastiktiles.in
Location :	Owned
Factory/ Branch 1 :	S.No.249, At and Po. Palaj, Mehsana-Becharaji Road, Taluka and District Mehsana, Gujarat, India
Tel. No.:	91-79-40097072
Fax No.:	91-79-29299721
Location :	Owned
Branch 2 :	UNIT-2, 25, Sobhasan, Mehsana-Vijapur Road, Mehsana – 384002, Gujarat, India
Branch 3 :	UNIT-3, At and Po. Nandasan, Ahd – Mehsana Highway, Taluka Kadi, District Mehsana, Gujarat, India
Branch 4 :	UNIT-4, Ceramic Zone’ At. Dalpur, Taluka Prantij, District Sabarkantha, Gujarat, India
Tel. No.:	91-79-40097072
Fax No.:	91-79-29299721
Location :	Owned

DIRECTORS

As on: 29.09.2012

Name :	Mr. Girishkumar Jayantibhai Patel
Designation :	Director
Address :	21, Sarnam Bungalow, Near Chandan Party Plot, Vejalpur, Ahmedabad – 380015, Gujarat, India
Date of Birth/Age :	04.04.1970
Qualification :	B.Com
Date of Appointment :	31.01.2005
PAN No.:	AGPPP6709C
DIN No.:	00426120
Name :	Mr. Ashokkumar Kishorilal Garg
Designation :	Director
Address :	A-11, Orchid Park, Near Anjali Tower, Ramdev Nagar, Ahmedabad – 380051, Gujarat, India
Date of Birth/Age :	30.12.1966
Qualification :	MBA (FS)
Date of Appointment :	29.09.2012
PAN No.:	ACTPG0753B
DIN No.:	05127905
Name :	Mr. Pankaj Narayanbhai Patel
Designation :	Additional Director
Address :	8 Rudravan Bunglows, Near Someshwar Park, Gulab Tower, Thaltej, Ahmedabad – 380054, Gujarat, India
Date of Birth/Age :	10.06.1971
Qualification :	B.E Ele. Engineer
Date of Appointment :	03.01.2013
DIN No.:	01320345

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Girishbhai Jayantibhai Patel	1333285
Jayendra Bhai Patel	5000
Pankaj Bahi Patel	292000
Rakesh Kumar K Patel	206200
Ramanbhai Patel	9000
Sanjaybhai Narayanbhahi Patel	165190
Vijaybhai Dinkara Ray Maniar	354129
Anilbhai Shankarlal Patel	157116
Arvindbhai Dwarkadas Patel	167300
Babubhai Shankarlal Patel	89500
Bhagvatiben Ramanbhai Patel	90000
Vimal Fiscal Private Limited, India	500000
C K Patel	800000
Chandubhai I. Patel	205938
Kantaben Chandubhai Patel	180000

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	8.31
Bodies corporate	25.06
Directors or relatives of directors	15.33
Other top fifty shareholders	51.30
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of Wall Tiles, Floor Tiles, Vitrified Tiles and Quartz.

Products :

Product Description	ITC Code
Vitrified Tiles	69081090

Brand Names :

Swastik Tiles

Exports :

Products :

· Wall Tiles

· Floor Tiles

· Vitrified Tiles

· Quartz

Countries :

· Europe

· Australia Gulf

· Africa

Imports :

Countries :

· Italy

· Spain

· China

Terms :

Selling :

Cash

Purchasing :

L/C

PRODUCTION STATUS (As on: 31.03.2012)

Particulars	Unit	Actual Production
Electricity	(UNIT/M.T)	245.79
Diesel	(LTR/M.T)	0.1928
Lignite/coal	(M.T/M.T)	0.0674
Gas	(SCM/M.T)	122.98

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and End Users

No. of Employees :

500 (Approximately) (In Office 100) (In Factory 400)

Bankers :

· The Mehsana Urban Co-Operative Bank Limited Urban Bank Road, Highway Mehsana – 384002, Gujarat, India

· State Bank of India

· Dena Bank

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Rupee term loans from banks (Personal guarantee given by two of the directors and corporate guarantee given by an associate concern.)	123.058	166.692
Loans taken for fixed assets	1.524	2.414
Working capital loans from banks (Cash Credit are secured by hypothecation of present and future stock of raw materials, stock in process, finished goods, stores and spares and book debts)	138.245	122.046
Total	262.827	291.152

Banking Relations :	--
Auditors :
Name :	R. R. S. an d Associates Chartered Accountants
Address :	211, Kamal Complex, Opposite State Bank of India, Near Stadium Circle, Navrangpura, Ahmedabad, Gujarat, India
PAN No.:	AAFFR0472A
Associate :	· Gladder Ceramics Limited CIN No.: U26933GJ2002PLC041253 · Akik Tiles Limited CIN No.: U26914GJ1996PLC029253 · Vimal Oil and Foods Limited CIN No.: L15400GJ1992PLC017626

CAPITAL STRUCTURE

As on: 29.09.2012

Authorised Capital : Rs.235.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.222.117 Millions

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
13000000	Equity Shares	Rs.10/- each	Rs.130.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11800000	Equity Shares	Rs.10/- each	Rs.118.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		118.000	118.000	118.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		89.656	64.332	21.868
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		207.656	182.332	139.868
LOAN FUNDS
1] Secured Loans		262.827	291.152	375.282
2] Unsecured Loans		134.078	95.390	59.253
TOTAL BORROWING		396.905	386.542	434.535
DEFERRED TAX LIABILITIES		19.449	12.895	11.014
TOTAL		624.010	581.769	585.417
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		448.188	437.528	405.717
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	173.765	145.516	86.274
	Sundry Debtors	151.366	119.435	148.884
	Cash & Bank Balances	8.433	8.084	4.590
	Other Current Assets	50.026	43.432	0.000
	Loans & Advances	2.226	11.683	19.639
Total Current Assets		385.816	328.150	259.387
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	136.759	106.155	67.697
	Other Current Liabilities	66.097	69.205	11.086
	Provisions	7.138	8.549	4.117
Total Current Liabilities		209.994	183.909	82.900
Net Current Assets		175.822	144.241	176.487
MISCELLANEOUS EXPENSES		0.000	0.000	3.213
TOTAL		624.010	581.769	585.417

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	769.378	665.354	551.965
		Other Income	1.527	3.353	1.191
		TOTAL (A)	770.905	668.707	553.156
Less	EXPENSES
		Cost of materials consumed	219.217	213.937
		Purchases of stock-in-trade	42.984	20.411
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(25.019)	(55.581)
		Employee benefit expense	58.857	46.669
		Amortisation expense	3.617	3.617
		Other expenses	350.863	326.303
		TOTAL (B)	650.519	555.356	449.012
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		120.386	113.351	104.144
Less	FINANCIAL EXPENSES (D)		61.472	50.550	57.182
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		58.914	62.801	46.962
Less/ Add	DEPRECIATION/ AMORTISATION (F)		26.273	23.031	22.222
	PROFIT BEFORE TAX (E-F) (G)		32.641	39.770	24.740
Less	TAX (H)		7.317	(2.694)	(3.595)
	PROFIT AFTER TAX (G-H) (I)		25.324	42.464	28.335
	Earnings Per Share (Rs.)		1.59	2.54	NA

Expected Sales (2012-2013): Rs.1940.000 Millions

The above information has been parted by Mr. Parag Dhorajia

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	3.28	6.35	5.12
Net Profit Margin (PBT/Sales)	(%)	4.24	5.98	4.48
Return on Total Assets (PBT/Total Assets}	(%)	3.91	5.19	3.72
Return on Investment (ROI) (PBT/Networth)		0.16	0.22	0.18
Debt Equity Ratio (Total Debt/Networth)		1.91	2.12	3.11
Current Ratio (Current Asset/Current Liability)		1.84	1.78	3.13

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
Loans repayable on demand	9.053	0.000
Intercorporate borrowings	55.399	38.733
Deposits from others	63.945	51.919
Loans and advances from others	5.681	4.738
Total	134.078	95.390

FUTURE PROSPECTS

The Board of Directors and members of the Company has already approved the Amalgamation scheme, by which Ashok Ceracon Private Limited (ACPL), Akik TilesLimited (ATL) and Gladder CeramicsLimited (GCL) would merge with The Company and the company would be resultant Company, subject to the order of Gujarat High Court.

This Scheme of Amalgamation provides for the amalgamation of ACPL, ATL and GCL with Swastik Ceracon Limited pursuant to Sections 391 to 394 and other relevant provisions of the Companies Act 1956.

The Scheme envisages the amalgamation of ACPL, ATL and GCL into SCL with a view to consolidate the business of all the companies in one entity and strengthening the position of the merged entity by enabling it to harness and optimize the synergies of all the four companies. Further, it will also result in reduction of overheads and other expenses facilitate administrative convenience and ensure optimum utilization of available services and resources.

OPERATIONS

The Company is in growth phase and Company’s operations continued to be satisfactory. During the year, the Company has achieved Turnover of Rs. 829.967 Millions during the year as compared to last year turnover of Rs. 727.092 Millions. The directors are making hard and sincere efforts for the better growth and prospects of the company in the future.

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U26920GJ2005PLC045383
Name of the company	SWASTIK CERACON LIMITED
Address of the registered office or of the principal place of business in India of the company	D/801-807, Ganesh Meridian, Opposite Amiraj Farm, New Gujarat High Court, S.G. Highway, Ahmedabad – 380060, Gujarat, India E-mail: sec.vimal@yahoo.co.in
This form is for	Creation of charge
Type of charge	Immovable property
Particular of charge holder	The Mehsana Urban Co-Operative Bank Limited Urban Bank Road, Highway Mehsana – 384002, Gujarat, India E-mail: mubank2005@yahoo.com
Nature of instrument creating charge	Instrument relating to Deposit of Title Deeds against the Ind. Hypothecation and Book Debt dated 26th November, 2012
Date of instrument Creating the charge	26.11.2012
Amount secured by the charge	Rs.50.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Rate of Interest : 13.50 % Terms of Repayment Repayable on Demand Margin Stocks : 70 % Book Debt : 50 % Extent and Operation of the charge The Mortgage Charge extends and operates on free hold non agriculture land for the industrial purpose bearing revenue survey no. 1064, 1065 and 1075 admeasuring 13051.00 Sq. Mtr. 9207.00 Sq. Mtr. and 12647.00 Sq. Mtr. respectively, situated within the limit of village Nandasan, Taluka Kadi, District Mehsana for Rs. 50.000 Millions.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Free hold Non Agricultural Land for Industrial Purpose bearing Revenue Survey No. 1064, admeasuring 13051 Sq. Mtr. situated within the limits of Village Nandasan, Taluka Kadi, District Mehsana. Free hold Non Agricultural Land for Industrial Purpose bearing Revenue Survey No. 1065, admeasuring 9207 Sq. Mtr. situated within the limits of Village Nandasan, Taluka Kadi, District Mehsana. Free hold Non Agricultural Land for Industrial Purpose bearing Revenue Survey No. 1075, admeasuring 12647 Sq. Mtr. situated within the limits of Village Nandasan, Taluka Kadi, District Mehsana.

FIXED ASSETS

Tangible Assets

· Land

· Buildings

· Plant and Equipment

· Factory Equipments

· Furniture and Fixtures

· Vehicles

· Computer Equipments

Intangible Assets

· Computer Software

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.53.94
UK Pound	1	Rs.82.77
Euro	1	Rs.71.05

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	4
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		36

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.